Drop in casino revenues hits Genting’s profit

genting

Genting Bhd posted an almost 24% drop in third-quarter profit, dragged lower by the impact of falling revenue from big money gamblers in its Singapore unit, Southeast Asia’s largest casino operator. 

Group net profit for July-September dropped to $105 million from $138 million a year earlier, according to a local stock exchange filing.

A plantations-to-gaming conglomerate controlled by Malaysian billionaire Lim Kok Thay, Genting has been spending heavily to expand its gaming and hospitality businesses in the United States and South Korea.

Genting controls Genting Singapore Plc, which reported on November 11 a 43% slump in net profit, hit by lower gaming revenue from high-rollers.

Singapore’s casinos have felt the impact of China’s corruption crackdown and economic slowdown, both reducing the number of VIPs at their tables. Around half of the big money business comes from China, where the crackdown has made it harder for wealthy Chinese to take money out of the country.

Net profit from Genting’s plantations unit jumped 91%, thanks to higher contributions from its plantations in Indonesia and property sales, according to a separate regulatory filing.

(Reuters)

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